Many business owners tend to rely on industry rules of thumb when estimating what their company is worth. Aren’t insurance agencies worth 1.5x revenue? Or is it 7x EBITDA? A platform agency must be at least 10x EBITDA, right? A lack of knowledge regarding the value of your business could be costly, leading to missed opportunities or inadequate wealth planning.
On a practical level, understanding how insurance agencies and brokerages are actually valued may help you understand how to increase the value of your business and maximize your return when it comes time to sell or perpetuate your agency. The purpose of this whitepaper is to provide an informative overview regarding the valuation of insurance brokerages and agencies.